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    Home > Agriculture News > Fertilizer News > The fertilizer industry forced production capacity to reshuffle, and some listed compound fertilizer companies grew against the market

    The fertilizer industry forced production capacity to reshuffle, and some listed compound fertilizer companies grew against the market

    • Last Update: 2022-03-20
    • Source: Internet
    • Author: User
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    The plight of the chemical fertilizer industry has forced the industry's production capacity to be shuffled.
    A large number of small and medium-sized enterprises have stopped production, which has increased the concentration of the industry, and some listed compound fertilizer companies have grown against the market.
    On the evening of April 19, Kingenta announced its first quarterly report.
    From January to March, it achieved operating income of 4.
    640 billion yuan and net profit of 405 million yuan, an increase of 11.
    04% and 22.
    21% year-on-year respectively.
    In addition, Stanley's quarterly report achieved net attributable to shareholders of listed companies.
    The profit was 151 million yuan, an increase of 18.
    31% year-on-year.
    The industry was in trouble.
    “Linshu County originally had more than 40 fertilizer companies of various sizes, but now there are only about 10 started.
    ” In Linshu, Shandong Province, where Kingenta and Stanley are located, Industry insiders told reporters that compared with the 30% annual profit growth rate in the past, the fertilizer industry as a whole is in trouble.
    Since the second half of 2015, the low prices of coal and oil have led to a sharp drop in the prices of fertilizer raw materials and bulk chemicals, which has led to a widening of the price gap between urea and compound fertilizers, and compound fertilizer products are facing downward pressure; the price of mainstream agricultural products has fallen, which has affected the enthusiasm of farmers to invest; Starting from September 1, 2015, the company's performance growth is under pressure in the face of a 13% value-added tax policy imposed on fertilizer sales and import companies.
    Take the Northeast as an example.
    The corn planting period has now come, but the sales staff of chemical fertilizer companies report that many farmers are still waiting and hesitating; the price difference of urea compound fertilizer is 30-40 yuan/bag (50KG) under normal circumstances, which was once affected by the falling price of raw materials.
    Was expanded to 60-70 yuan.
    "Distributor inventory factors make it impossible to cut prices, but they can only resist for a while," a salesperson said.
    Concentration will increase "Pressure promotes industry transformation and upgrading, and industry concentration will be further improved.
    " At the annual shareholders meeting held on the 19th, Jinzhengda Vice Chairman Chen Hongkun said that the company has a wealth of technical reserves and will integrate through technology output.
    Upstream industries, and at the same time strengthen agrochemical services and channel construction downstream, to respond to the increasingly fierce competition in the fertilizer industry.
    According to reports, Kingenta is stepping up the construction of the agrochemical service center to increase the stickiness of dealers and end customers.
    The company plans to build 300 agrochemical service centers within 2-3 years, and is expected to expand from the current 40 to 100 by August this year.
    The company expects to achieve a net profit attributable to shareholders of listed companies from 775 million yuan to 839 million yuan in the first half of the year, a year-on-year increase of 20%-30% respectively.
    The company stated that it will actively explore the O2O model of agricultural materials based on specialized agricultural services and key regional market construction.
    Zhang Lei, deputy general manager of Stanley, said that in the first quarter, he made a super-pre-investment in sales and allocates sales resources according to a growth of 20%-30%.
    In response to the decline in fertilizer prices, the company has adopted a price-insurance policy for distributors.
    "In the future, we will pay more attention to the needs of consumers and use Stanley's agrochemical service e-commerce platform to provide consumers with a full range of services including seeds, fertilizers, agricultural machinery, purchasing, storage and drying, and finance.
    " Stanley expects to achieve net profit in the first half of the year.
    376 million to 409 million, an increase of 15%-25% year-on-year.
    As the price of petrochemical raw materials bottoms out, relevant personnel of the company predict that the price difference between urea and compound fertilizer will be further reduced, and the pressure for price reductions of enterprises will be reduced in the later period.
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